High Tide Opens Second Canna Cabana in Kanata, Ontario

Rhea-AI Summary

High Tide Inc. (HITI) Opens 161st Canna Cabana Store in Kanata, Ontario

Positive

• High Tide Inc. continues to expand its retail footprint with the opening of its 161st Canna Cabana store in Kanata, Ontario, catering to a population of approximately 100,000 and a mix of civil servants and high-tech workers.
• The strategic location of the new store in Kanata's commercial district and within a well-trafficked retail power center ensures easy access for residents and potential customers.
• The company's focus on organic store openings and expansion in Ontario, particularly in Mississauga, reflects its commitment to growth and market penetration.

Negative

• None.

Insights

Market Research Analyst

The expansion of High Tide Inc.'s retail footprint with a new Canna Cabana location represents a strategic move to capitalize on the growing demand for recreational cannabis products in Ontario. The significance of this development lies in the company's ability to leverage its discount club model to attract a broad customer base, including civil servants and high-tech workers in Kanata. The store's proximity to major retail outlets and its location in a high-traffic area are likely to enhance visibility and foot traffic, potentially leading to increased sales and market share within the region.

It is critical to note that the retail cannabis market in Ontario is becoming increasingly competitive. High Tide's decision to focus its early 2024 expansion in Ontario, particularly with the store cap set to double, suggests a bullish approach to capturing a larger market share in a province that is showing signs of liberalizing its stance on cannabis sales. This move may serve as a catalyst for further expansion and could set a precedent for other companies in the industry to follow suit.

Financial Analyst

High Tide's announcement of its 161st Canna Cabana store opening could have a positive impact on the company's financial performance. The expansion into Kanata, a suburb with a significant population and a demographic that aligns with the target market for cannabis products, might contribute to revenue growth. The store's strategic location, coupled with an innovative membership model, is designed to enhance customer loyalty and repeat business, which can lead to improved margins and profitability.

In the context of High Tide's stock performance on the Nasdaq and TSXV, investors will likely monitor the store's revenue contributions and the overall growth trajectory in Ontario. If the new store and others planned for early 2024 perform well, it could reflect positively in the company's stock valuation. However, investors must also consider the capital expenditure associated with such expansions and the time required for new stores to become profitable.

Cannabis Industry Consultant

The opening of High Tide's new Canna Cabana store in Kanata indicates a proactive approach to expanding within a niche market of cannabis retail. The company's emphasis on a discount club model is particularly noteworthy, as it suggests a differentiation strategy aimed at fostering customer loyalty in a competitive landscape. By offering a unique value proposition, High Tide is positioning itself to not only attract price-sensitive consumers but also to build a community around its brand.

With Mississauga recently opting into legal cannabis sales and the store cap in Ontario set to increase, High Tide's expansion plans appear well-timed. The company's growth strategy may benefit from early mover advantages in newly opened markets. However, the impact of regulatory changes on the industry's competitive dynamics should be closely observed, as they may alter the market entry barriers and influence consumer preferences.

CALGARY, AB, Dec. 27, 2023 /PRNewswire/ – High Tide Inc. ("High Tide" or the "Company") (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA), the high-impact, retail-forward enterprise built to deliver real-world value across every component of cannabis, announced today that its Canna Cabana retail cannabis store located at 457 Hazeldean Road Kanata, Ontario has begun selling recreational cannabis products and consumption accessories for adult use. This opening marks High Tide's 161st Canna Cabana branded location in Canada, the 53rd in the province of Ontario and the 2nd in Kanata.

With a population of approximately 100,000 and a mix of civil servants and high-tech workers, Kanata is ideally suited for the Canna Cabana brand. This new store is situated on Kanata's main thoroughfare and is in a major retail power centre, anchored by a provincially owned liquor store chain and an upscale grocery store chain among several popular quick-service restaurants.

"Our new Kanata location compliments our highly successful existing store in the heart of Kanata's tech district. This new site is situated strategically in Kanata's commercial district in a well-trafficked retail power centre, which ensures that all residents of this fast-growing and prosperous Ottawa suburb will have easy access to our innovative discount club model, servicing even more ELITE and Cabana Club members," said Raj Grover, Founder and Chief Executive Officer of High Tide.

"The bulk of our expansion and organic store openings for early 2024 will be focused in Ontario. With the store cap set to double and Mississauga, Ontario's third-largest city, recently opting into legal cannabis sales, we are very excited about the opportunity that Canada's largest province holds. As we have seen in other provinces, illicit market capture is highest where legal cannabis retailers are allowed to grow with market demand, and our store sale volumes clearly show the demand from Ontarians for safe recreational cannabis products, " added Mr. Grover

ABOUT HIGH TIDE

High Tide, Inc. is the leading community-grown, retail-forward cannabis enterprise engineered to unleash the full value of the world's most powerful plant. High Tide (HITI) is uniquely-built around the cannabis consumer, with wholly-diversified and fully-integrated operations across all components of cannabis, including:

Bricks & Mortar Retail: Canna Cabana™ is the largest non-franchised cannabis retail chain in Canada, with 161 current locations spanning British Columbia, Alberta, Saskatchewan, Manitoba and Ontario and growing. In 2021, Canna Cabana became the first cannabis discount club retailer in North America.

Retail Innovation: Fastendr™ is a unique and fully automated technology that integrates retail kiosks and smart lockers to facilitate a better buying experience through browsing, ordering and pickup.

E-commerce Platforms: High Tide operates a suite of leading accessory sites across the world, including Grasscity.com, Smokecartel.com, Dailyhighclub.com, and Dankstop.com.

CBD: High Tide continues to cultivate the possibilities of consumer CBD through Nuleafnaturals.com, FABCBD.com, blessedcbd.de and blessedcbd.co.uk.

Wholesale Distribution: High Tide keeps that cannabis category stocked with wholesale solutions via Valiant™.

Licensing: High Tide continues to push cannabis culture forward through fresh partnerships and license agreements under the Famous Brand™ name.

High Tide consistently moves ahead of the currents, having been named one of Canada's Top Growing Companies in 2021, 2022 and 2023 by the Globe and Mail's Report on Business Magazine and was ranked number one in the retail category on the Financial Times list of Americas' Fastest Growing Companies for 2023. To discover the full impact of High Tide, visit www.hightideinc.com. For investment performance, don't miss the High Tide profile pages on SEDAR+ and EDGAR.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release may contain "forward-looking information" and "forward-looking statements within the meaning of applicable securities legislation. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. The forward-looking statements herein include, but are not limited to, statements regarding: the timing of our new location beginning to sell recreational cannabis products and consumption accessories for adult use, the expected benefits of the store location, the expectation that the store cap will increase in Ontario, and our commitment to opening future stores in prime power centre locations and the expansion of our discount club model. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. Although the Company believes that the expectations reflected in these statements are reasonable, such statements are based on expectations, factors, and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including but not limited to the risk factors discussed under the heading "Non-Exhaustive List of Risk Factors" in Schedule A to our current annual information form, and elsewhere in this press release, as such factors may be further updated from time to time in our periodic filings, available at www.sedarplus.ca and www.sec.gov, which factors are incorporated herein by reference. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement and reflect the Company's expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results, or otherwise, or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.

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SOURCE High Tide Inc.

FAQ

What is the latest announcement from High Tide Inc. (HITI)?

High Tide Inc. has opened its 161st Canna Cabana store in Kanata, Ontario, catering to a population of approximately 100,000 and a mix of civil servants and high-tech workers.

Where is the new Canna Cabana store located?

The new Canna Cabana store is located at 457 Hazeldean Road, Kanata, Ontario.

What is the focus of High Tide Inc.'s expansion for early 2024?

High Tide Inc.'s expansion and organic store openings for early 2024 will be focused in Ontario, particularly in Mississauga, the third-largest city in Ontario.

Who is the Founder and CEO of High Tide Inc.?

Raj Grover is the Founder and Chief Executive Officer of High Tide Inc.